F. No. 17(2)/2/08-ME/Pt.-11/2014-15Government of India

Ministry of Micro Small & Medium EnterprisesOffice of Development Commissioner (MSME)

*****Room No. 725, Nirman Bhavan,

New Delhi, the February t t", 2015

Office Memorandum

Subject: Proposal for Design Clinic for design expertise to MSME'sManufacturingSector - NMCP- Note for EFC.

The undersigned is directed to say that the meeting of SFCon the above subject isscheduled to be held under the Chairmanship of Secretary (MSME)on Wednesday, the18th February, 2015 at 10.30 AM in the Room No. 49 (Samiksha), Udyog Bhavan, NewDelhi.

2. A copy of the (Note of SFC) is enclosed. Addressees are requested to make itconvenient to attend the meeting.

Yours faithfully,

~~'I/~

(RakeshKumar Choudhar.Deputy Director (NM )

Tel.: 011-23062185.Dated: 11.02.2015

To,

(As per list enclosed)

~

~ The Secretary,1.

~Ministry of Finance,Deptt. Of Expenditure (PF.II)RoomNo. 161, North Block,NewDelhi.

2. The Secretary,Ministry of HI&PE,RoomNo. 160, UdyogBhavan,NewDelhi.

.,3. The Secretary,

•Ministry of Human Resource& Development,RoomNo. 121, 'C' Wing, Shastri Bhavan,NewDelhi.

4. The Secretary,Ministry of Industry & Commerce,Dlo Industrial Policy & Promotion,RoomNo. 134, UdyogBhavan,NewDelhi.

5. The Secretary,Ministry of Social Justice & Empowerment,RoomNo. 613, 'A' Wing, Shastri Bhavan,NewDelhi.

6. The Secretary,Ministry of Labour & EmpowermentRoomNo. 108, ShramShakti Bhavan, Rafi Marg,New Delhi.

7. The Secretary,Ministry of Environment & Forests,RoomNo. 627, ParyavaranBhavan, CGOComplex,Lodhi Road,NewDelhi.

8. The Secretary,Ministry of Tribal Affairs,RoomNo. 722, 'B' Wing, Shastri Bhavan,New Delhi.

9. The Secretary,~ Ministry of Women & Child Development

Room No. 607,' A' Wing, Shastri Bhavan,New Delhi.

10. Adviser,NITI Aayog,Room No. 221, Yojana Bhavan,SansadMarg, New Delhi

Copy to:

1. PSOto Secretary (MSME)Udyog Bhavan, New Delhi.

2. PPSto AS&FA (MSME), Udyog Bhavan, New Delhi.

3. PSto SS&DC(MSME), Nirman Bhavan, New Delhi.

4. Economic Adviser (BNN), MSME,Udyog Bhavan, R. No. 265 A, New Delhi.

~S to JDC (SB), Nirman Bhavan, New Delhi.

/

DRAFT MEMORANDUM FOR STANDING FINANCECOMMITTEE

. (SFC)

For the scheme on

Design Clinic Scheme for Design Expertise to

Micro, Small and Medium Enterprises (MSMEs)

Manufacturing sector

Government of India

Office of the Development Commissioner (MSME)

Ministry of Micro, Small and Medium Enterprises

"A" Wing 7th Floor, Nirman Bhawan,

New Delhi-IIO 108.

1. Project Identification

1.1 Title of the project / scheme:

Design Clinic Scheme for design expertise to MSME's manufacturing sector

1.2 Name of the sponsoring agency (Ministry / Department / Autonomous Body /Central PSE):

Office of the Development Commissioner (MSME), Ministry of Micro, Small &Medium Enterprises, Govt. of India

1.3 Proposed duration of the projectXII Plan (Five Years, From March, 2012 to March, 2017)

1.4 Total cost of the project over the proposed durationRs. 149.00 crore (GoI Rs. n 125.25 lakh and Private contribution Rs. 3773.75lakh)

1.5 Nature of scheme: Central Sector/ Centrally Sponsored/Additional CentralAssistanceCentrally Sponsored

2. Project Category

2.1 Please indicate which category the project belongs to:

(a) Continuing scheme from past Plan periods and included in current Planperiod.It is a continuing scheme from XI Plan period and has been included in currentXII Plan.period.

(b) New Plan Scheme included in the current Plan periodNot applicable

(c) New Plan scheme not included in the current Plan periodNot applicable

2.2 If project pertains to category 2.1(a) please summarizes the benefits alreadyaccrued and expenditure already incurred.

Design Clinic is a Strategic Model of design intervention, where a solution to anexisting design problem is diagnosed and remedial steps suggested by a multi­disciplinary team of design expert. In this model the value additions to an idea or aconcept is imparted through interaction and at a lesser cost to a specificindustry/sector. It applies to needy sector, like MSME Manufacturing Sector, whereconventional model of design consultancy and training is not often affordable. Thismodel brings design exposure to the door step of industry clusters for designimprovement evaluation and analysis and adopting even long termconsultancy/design related intervention.

Thus a design clinic is defined as a mechanism where clinical design solutions aremade available to the design problems of products/services concepts and ideas thatare brought in for design analysis and scrutiny. Here, flexible and strategic solutionsare made available to provide value addition through synergies and matured optionsas solution to design problem. Replicating this model in a national scale, as aNational Design Clinic will bring in clinical solution to the much needy MSMEsector through out the nation.

The Scheme was approved on 09.01.2010 and was implemented throughout thecountry by National Institute of Design (NID), Ahmedabad who was acting as singlenodal agency for the Scheme, during XI plan.

A. For smooth implementation of the Scheme, NID has established following:

1. Design Clinic Headquarter New Delhi

11. Regional Centres 4 Nos.

(Ahmedabad, Bangalore, Kolkata, New Delhi & extension Centre at Guwahati)

B. Physical progress: Following activities have been completed by NID w.e.f.February, 2010 to 3151 March, 2012:

1. Design Awareness Seminars 193 Nos.

ll. Design Workshops & Need Analysis 50 Nos.

iii. Individual MSME Design Project approved - 56 Nos.

iv. Group of MSME Project approved 4 Nos.

v. Orientation Workshop for Design Consultant- 20 Nos.

vi. Study of Global Best Practices and Design

Clinic Programme of other countries 1 No.

(a delegation of 25 persons visited Japan)

viii. MSME Clusters identified 180 Nos.

viii. Project Management & Advisory CommitteeMeeting held 8 Nos.

C. Financial progress: The total approved outlay of the scheme for XI plan periodwas Rs. 73.58 cr. with Gol contribution as Rs. 49.08 cr. and beneficiaries MSMEs asRs.24.50 cr.

The following expenditure has been made by NID in administering the Design ClinicScheme:

Year Rs. in Lakh

2009-10 170.00 .

2010-11 400.00

2011-12 960.00

Total 1530.00

D. Evaluation study was conducted by an independent agency which hasrecommended for continuance of the scheme (Annexure - A). The points of therecommendation of the evaluation study are summarized below:

i. The scheme has successfully achieved the purpose, the larger objective and thefocus for which it was set up and is recommended to be continued during the XIIthPlan period.

ii. Overwhelmingly the MSMEs wanted to use the Scheme to work on more projectsand get additional funding realizing the benefits accrued. It is recommended that

MSMEs be allowed to work on design projects more than once and not be restrictedas per the current norms.

iii. The Scheme has only been operation for a portion of the Plan Period and eventhough only Rs. 12.57 Crore has been expended out of the planned expenditure of Rs.49.08 Crore, it has impacted a far greater number of Beneficiaries and MSMEs. It isrecommended that both outlay as well as targets be substantially increased during theXII Plan Period.

iv. The Nodal Agency has met all the facets enunciated by the Scheme and evenmentored the same. It is an opportune time to bring in more such NationalInstitutions, MSME Tool Rooms, MSME TDCs and accredited industry associationsat the Apex level in order to sustain the momentum. Multiple agencies workingsimultaneously would be able to increase the reach and coverage of the scheme andset in a design culture amongst a far greater number of MSMEs.

v. The partnership'S with the Apex Chambers and Industry Associations should beextended to include grass root level organizations like local industry bodies / clusterorganizations / specialized associations that have closer connect with MSMEs. Thiswould result in greater penetration and bring in more MSMEs under the ambit of theScheme.

vi. The Regional Design Centres are pivotal to the implementation of the Scheme andit is recommended that they be formally strengthened to also include monitoring as apart of its functions.

vii. The subsidy given for Design Awareness Programmes is recommended to beincreased from 75% of Rs. 4 Lakhs to 75% of Rs. 5 Lakhs; subsidy for Projects for agroup of up to 3 industry applicants is recommended to be increased from 60%subject to a limit Rs. 9 Lakhs to 60% subject to a limit Rs. 15 Lakhs; subsidy forProjects for a group of4 industry applicants or more is recommended to be increasedfrom 60% subject to a limit Rs. 15 Lakhs to 60% subject to a limit Rs. 25 Lakhs; thiswill not only cater for the increased costs, but also be able to attract foreign designerswhen required. The subsidy percentage for projects may be increased to 75% in thecase of Micro Industries, where finance is a major constraint.

2.2(a) Also for proposals belonging to category 2.1 (a), an evaluation report by anindependent agency with comments of FAIIFD thereon may be provided along withfollowing details as Annexure to EFC/PIB memo:

Commencement of Scheme& Year ofEvaluation

Name ofEvaluatingAgency

Details of Independent Evaluation

M~or Findin_gsi. The DesignAwarenessprogrammes/Workshopsmotivatedparticipantsindustries/

from

Scheme was NIESBUD,notified In XI NoidaFYP on15.2.2010

Scheme wasEvaluatedduring theYear 2012-13

Methodologyi. DeskResearch! Studyof reports/interaction withNodal Agency.

ii. Analysis offeedback reportsreceived frombeneficiaries!stakeholders!participantsDesignAwarenessprogrammes!Workshops/Orientationprogrammes forDesigners.

iii.analysisfinancial

Detailedof

implicationsreceived frombeneficiaries(Industries/Student project).iv. Suggestionsreceived fromDelegates whovisited Japan.v. Field visits toidentify locationsincluding NorthEast Region.

associations! clustersto understand aboutDesign Clinicscheme and utilize

of the scheme forDesign of newproducts. There areenormouspossibilities ofconverting theparticipants to theconcept of Designand its usage.ii. One majoraspects that has beenbought out bydesigners &beneficiariesMSMEs is the lackof funding for tools,jigs and moulds forthe new /improvedproducts andprocesses.iii. Foreign designexperts can becomepart of the DesignScheme. It would beenriched through

Main Recommendationsi. The scheme has successfullyachieved the purpose, the largerobjectives and the focus for which itwas set up and is recommended to becontinued during the XII Plan Period.

ii. Overwhelmingly the MSMEswanted to use the Scheme to work onmore projects and get additionalfunding realizing the benefits accrued.It is recommended that MSMEs beallowed to work on design projectsmore than once and not be restricted asper the current norms.

iii. The Scheme has only beenoperation for a portion of the PlanPeriod and even though only Rs.12.57Crore has been expended out of theplanned expenditure of Rs.49.08Crore, it has impacted a far greaternumber of Beneficiaries and MSMEs.It is recommended that both outlay aswell as targets be substantiallyincreased during the XII Plan Period.

iv. The Nodal Agency has met all thefacts enunciated by the Scheme andeven mentioned the same. It is anopportune time to bring in more suchNational Institutions, MSME ToolRooms, MSME TDCs and accreditedindustry associations at the Apex levelin order to sustain the momentum.Multiple agencies workingsimultaneously would be able to

vi. Groupdiscussions!interaction withbeneficiaries!Stake holders.

cross pollination ofnew and innovativeconcept!ideas.

iv. The timerequired to processproject proposal hasbeen much longerthan desired by theMSMEs. Also theamount sanctionedis often reduce andthe beneficiaries areunable to understandthe reason for thesame.

v. For the rmcroindustries andclusters capital is themajor constraintsand even the 25% ofthe contribution forDesign AwarenessProgramme and40% for Projects areoften not affordable.

vi. Thedocumentation forfiling projectapplication IS

complex and needsto be simplified.vii. The scheme hasbenefitted studentsto products to designand develop newproducts.

vi. The Regional Design Centres arepivotal to the implementation of theScheme and it is recommended thatthey be formally strengthened to alsoinclude monitoring as a part of itsfunctions.

increase the reach and coverage of thescheme and set in a design cultureamongst a far greater number ofMSMEs.

v. The partnerships with the ApexChambers and Industry Associationsshould be extended to include grassroot level organizations like localindustry bodies!clusterorganizations!specialized associationsthat have closer connect with MSMEs.This would result In greaterpenetration and bring in more MSMEsunder the ambit of the Scheme.

VII. The subsidy given for DesignAwareness Programmes IS

recommended to be increased from75% of Rs. 4 Lakh to 75% of Rs. 5Lakh; subsidy for Projects for a groupof up to 3 industry applicants IS

recommended to be increased from60% subject to a limit Rs. 9 Lakh to60% subject to a limit Rs. 15 Lakh;subsidy for Projects for a group of 4industry applicants or more IS

recommended to be increased from60% subject to a limit Rs. 15 Lakh to60% subject to a limit Rs. 25 Lakh;this will not only cater for theincreased costs, but also be able toattract foreign designers whenrequired. The subsidy percentage forprojects may be increased to 75% inthe case of Micro Industries, wherefinance is a major constraint.

2.2(b) If there are changes proposed in the proposal belonging to category 2.1(a), pleaseprovide existing provisions and proposed changes against each component in tabular formalong with financial implications due to the proposed changes:

-SI.

No.

Implementing agenciesfees (Honorarium forhiring ofDesigner! consul tant! scientist/professors/academicians, utilizingtheir services andinfrastructure ofdifferent Institutes) @14% (approx.) of Go I.

Existing component New! Revisedcomponent

Changesproposed

inExistingcompone

nt

Reasons forchange inexisting

components andaddition of newcomponents

FinancialImplicationsin the last

Plan

Financialimplication of

addition!change toproposal.

1. Setting-up of DesignCentre & 4 nos. of -Regional Centres

-NA- -NA- Rs. 100 lakh(Rs. 50 lakh for setting-upfor setting-up of 2 newfor Design DesignCentre & Rs. Regional50 lakh for Centressetting-up of4 RegionalCentres)

Rs.100lakh

2. Operating Expenses forDesign RegionalCentres to be made byDC(MSME) throughimplementing agencies

Rs.280lakh Rs.10001akh

3.

4. Mobilization &Coordination - For more - Rs. 50 lakhWork Shop for effectiveMSME implementationofficials (5 of the scheme atdays) field level.

Rs.235lakh Rs. 1365 lakh

5. Design Awareness Programmes5 (a) Seminars· On Design Clinic - - - Rs.120lakh Rs. 360 lakh

Scheme I

5 (b) Workshops(including need - - - Rs. 800 lakh Rs. 1375assessment survey) lakh· (75% GOI funding)

6Design Clinic Projects

6(a) Student Projects(75% GOI funding) - - - Rs. 200 lakh RS.2001akh

6(b) Individual Micro'· projects (75% GOI Rs. 1800- - -

funding) (upto ,.,lakh.)

- units)6(c)

Individual Small and - - - Rs.3675Medium Enterprises lakh(SMEs) projects RS.55001akh(60% GOIfunding) (upto 3units)

6(d) Rs.2000Group Micro - - - lakhprojects (75% GOIfunding) (more than3 units)

6(e) Group Small andMedium Enterprises - - - Rs.2400(SMEs) projects lakh(60% GOI funding)(more than 3 units)Total (6 (a) to 6 (e) RS.I0075

Rs.5700 lakh lakh7 Promotional

Activity, Website, - - - Rs. 50 lakh Rs. 100 lakhPublicity,MiscellaneousExpenses, etc.

~ OrientationProgramme for - - - RS.25lakh Rs. 150 lakhstakeholders ofDesign

c-'

ClinicScheme

------------------- - -_. - - -------- ----

-A

9 Study of Global BestPractices and Design - - - Rs.48lakh Rs.300lakh. Clinic Programme ofOther Countries

0

10National level - To have national - Rs. 20 lakh.Workshop on & internationalDesign Clinic level expertise for

design and(two days development ofdurations) new products to

MSMEs.

2.3If the project pertains to category 2.1 (c) please indicate steps initiated for obtainingapproval of Full Planning Commission.

Not applicable

2.4 Please indicate in case of new Centrally Sponsored Scheme or Major change inongoing CSS, whether States/U'Ts have been consulted and their consent obtained toimplement the scheme with proposed sharing of funds.

Not applicable

3. Justification for the project

3.1 The justification for taking up / continuing the project or scheme may be provided.

Indian industry is mainly characterized by Micro, Small and Medium Enterprises. MSME'shave over 40% share in total Industrial output and manufactures over 6000 products, accountsfor 95% (over 13 million) of Industrial Units. MSME sector employs over 41 million people(biggest employers after agriculture) and contributes to nearly 36% of National Exports.

Indian MSME's manufacturers diverse range of products from very simple nature to technicallycomplex products. MSME's are extremely vulnerable to changes in the environment be itbusiness environment or political or social. With the rate of change happening in the businessenvironment and technological environment it is becoming very critical for the Indian MSME'sto maintain its competiveness in current times. Indian MSMEs are facing a tough competitionfrom their global counterparts due to liberalization, change in manufacturing strategies andturbulent and uncertain market scenario.

Indian market is now flooded with the latest and best products from around the world. Intensivecompetition and ever growing demand of customers have made the very survival - leave asidethe growth - extremely difficult for these MSMEs. The domestic market, the MSMEs' mainmarket base, has shifted from the consumer-oriented market to the customer-oriented marketwhere satisfaction to the customer is the order of the day. The products therefore, have to "standout" attract and persuade the customer. In such a situation, when a customer has to choose fromsuch products his decision to choose one from the other will depend mainly on the visualappearance of the product and the ease of its use.

The challenge, therefore, today before the Indian MSMEs is to understand the customer'sneeds and aspirations create value for money and develop a cutting edge for itself through valueaddition. Till the recent past, MSMEs have been quite successful in selling their products in aprotected market without acknowledging the need to indulge in R&D and Design developmentor staying in tune with the market requirements. However, today these small and medium scaleenterprises are encountering serious difficulties in withstanding the tough competition in theopen market scenario. Taking cognizance of the changed business and industry dynamics, whichposes serious threat to the MSMEs, there is an urgent need for developing alternative designstrategies.

Design, Innovation and growth are linked together. Experiences and reports from many countriessuch as UK, Korea, Finland, Singapore show that companies that use new design are moresuccessful than those that do not go for Innovation. Design plays an important part in addingvalue to products and services. It has been the Government's policy to promote innovationthrough design of new products and process. The objective is to enhance industry understandingand application of design and innovation, and to promote design as a value adding activity andintegrate it into mainstream business and industrial processes of MSME's. The focus is to helpour MSMEs industries move up the value chain by switching the production mode from originalequipment manufacturing to original design manufacturing and hence original brandmanufacturing.

The wider application of design by the MSMEs will increase the value and competitiveness oftheir products and services in the national as well as global market.

The Govt. considers it necessary to strengthen support for innovation and design to betterharness the economic potentials of design. Through Design Clinic Initiative, we seek to instilinto our MSME's high value-add, high intellectual property and creativity content. We note thatother economies in the region such as Korea, Singapore and Taiwan have also launched majorinitiatives to promote design.

It is considered that design is a professional business activity (as opposed to a form of art) thatcan add value and increase competitiveness of products or services by interfacing with aesthetics,science and technology. Design is a process involving the exploitation and transformation of

creativity and innovation into the development of tradable products and services. It is multi­disciplinary, and may embrace the sciences of materials technology, engineering, ergonomics,manufacturing and aesthetics.

Given the diversity of design disciplines and the multi-disciplinary nature of design processes, itis envisaged that the Design Clinic Initiative should aim at supporting and promoting design andrelated activities that would offer MSME's the ability to differentiate themselves from theircompetitors, add value to their products or services, and increase their economiccompetitiveness.

The weakness of the MSME sector is the lack of awareness about the benefits and use of design,the importance of competitive businesses for national/regional economy; and the potentialbenefit of the use of design justify the need for encouraging companies to invest in design. Astronger focus on the development of products and services would help MSMEs to become morecompetitive, thereby strengthening the industry and consequently the economy.

National manufacturing policy envisaged to Increase manufacturing sector growth to 12-14%over the medium term to make it the engine of growth for the economy. The 2 to 4 % differentialover the medium term growth rate of the overall economy will enable manufacturing tocontribute at least 25% of the National GOP by 2022. The instant scheme is a unique schemesupporting MSMEs in the endeavors to be competitive to the international and domestic marketand has born fruits after implementation during 11th plan.

The scheme has successfully achieved the purpose, the larger objectives and the focus for whichit was set up and is recommended to be continued during the XII Plan Period by the evaluationstudy report.

3.2 The alternatives that have been considered before firming up the design of theproject may be stated. (This should also include alternate modes of project delivery, e.g.outsourcing PPP etc. that have been considered)

During the XI Plan period, Scheme was delivered by National Institute of Design (NID),Ahmedabad who was acting as single nodal agency. However, during the implementation of theScheme at the cluster level it has been observed that NID is facing problem at the field level indelivering the scheme throughout the country, hence it has been proposed to include some moreagencies to be nominated on nomination basis for delivering the Scheme along with NID. Thiswas recommended in the evaluation study as well.

Accordingly, MoU with Indian Institute of Science (IISc), Bangalore and Council of Scientificand Industrial Research (CSIR), New Delhi have been signed to utilise their services. Apart fromIISc. and CSIR, possibilities will also be explored to take the services of following organizationsin due course:

1. Indian Institute of Technology (Industrial Design Centre), New Delhi, Mumbai, Kanpur,Guwahati and all other IITs.

11. Footwear Design & Development Centre, Noida -for footwear related design project.111. Central Institute of Footwear Technology, Agra & Chennai.IV. National Institute of Technology.v. MSME Tool RoomsVI. MSME TDCsVII. Accredited industry associations

Besides above, more such national institutes will be engaged in order to sustain the momentumas recommended in the evaluation with the approval of PMAC as per needs and requirements.

Further, it is proposed to implement the Scheme with the support of beneficiaries units by way oftheir contribution for implementing the various activities of the scheme. Based on the feedbackreceived from Industries Association} MSMEs and other stakeholders, the following changeshave been proposed in XII Plan in comparison to XI Plan:

S.No. Activity Existing Proposed Contribution fromContribution MSMEs XII Planfrom MSMEsXI Plan Small & Micro Industry

MediumIndustry

1. Design 25% 25% 25%Workshop

2. Design project 40% 40% 25%for individualMSME or groupup to threeMSMEs

3. Design projects 40% 40% 25%for a group offour or moreMSMEs

3.3 Please state whether the project proposal has objectives and coverage whichoverlap with projects I schemes being implemented by the same or anotheragency (Ministry I Department I State government). In case of overlap pleasestate why the project scheme needs to be considered as a separate stand aloneeffort.

Not applicable

4. Project Objectives and targets

4.1 The objectives of the project may be mentioned. These objectives shouldflow from the project justification.

Objectives:

The objective of the Scheme is to;

(i) Bring the industrial design fraternity closer to the MSME Sector for enhancingthe manufacturing competitiveness.

(ii) Develop an institutional base for the industries design solutions(iii) increase the awareness of the value of design and establish design learning In

the micro, small and medium sized enterprises, and(iv) Increase the competitiveness of local products and services through design.

Targets:The programme is divided into following major target intervention:

(i) Setting up of Design Clinic Regional centres.(ii) Strengthening of existing regional centre.(iii) Organizing Design Awareness Seminars and Workshops, Orientation

Programme, National Level Workshop, visit for study of global bestpractices and design clinic programme of other countries and

(iv) Design Projects for individual MSME or a group of MSMEs.

Design Clinic Scheme will be guided by the following key principles:

1. Applicant friendly selection processes2. Promotion, dissemination in regionai/locallanguages understood by the MSME's3. Establish benefits clearly without overwhelming the MSME's4. Learn from other successful design support programs5. Establish a clear process pipeline

4.1.1 Applicability

The applicability of project funding is to an individual MSME or a group of MSMEscoming together. This means that if for common interest a certain number ofMSME's are to come together or MSME's based in a certain industrial clusters are tocome together they can apply for project funding under this scheme. WhereverMSME is mentioned it is meant to include an individual company or a group ofcompanies.

The company must be an MSME, a micro, small or medium enterprise as per thedefinition prescribed in MSMED Act 2006. The Designer that a company employs inthis programme must be selected from pool of qualified designers authorized for thisprogramme.

4.1.2 Need Analysis

Once the design efficiency is established the obvious question for any MSME wouldbe to know where to start. At this juncture either they have a design company /academic institution in mind who they feel and recognize can help. Otherwise theycan contact the Design Clinic Regional Centres for help. Design Clinic RegionalCentres on receiving the intent shall suggest 3 design companies / academicinstitutions from which the MSME can choose from and consequently also notify thesuggested companies / institutions.

A design need analysis is the first step. In a design need analysis, the design company/ academic institution shall visit the company and meticulously scrutinize all designrelevant fields. What is good? What can be improved? What is unacceptable?

Following a design need analysis, the team will write a report. The report will offer asnap shot review of the present state. A design need analysis will point to ways forimprovement. It will also recommend a preferred sequence of actions when it isimpossible to make all improvements immediately and simultaneously.

A template for design need analysis will be developed. The experts shall submit thereport using the given template.

4.1.3 Consulting

A design need analysis diagnoses the problems and it roughly prescribes what shouldbe done. Consulting develops detailed solutions, and helps the company to do and tolearn by doing. Tacit knowledge, the kind of knowledge that companies can acquireonly by doing, is necessary for working successfully with design.

The most important part of the consulting aspect is to convert design solution into abusiness solution. No design activity is complete without good businessunderstanding or inputs relating design to business. Therefore during the consultingphase it is important to bring in this input through the design consultant. In specificcases an independent business evaluation could be commissioned to act as input fordesign consultant. Help from business consultant, management students could beincorporated at this juncture.

4.1.4 Project Proposal

Based on the need analysis and consulting outcome a detailed project proposal shallhave to be prepared. This proposal shall include all aspects of the proposed projectand the financial details. The proposal shall be submitted in the prescribed format forconsideration by the assessment panel of the Design Clinic Centre.

4.1.5 Form of Funding Support

All applications for funding support for design projects under the Design Clinic mustbe in collaboration between a MSME requiring assistance in design and a designcompany I academic institution which will provide that assistance.

The funding support will be given by way of a grant to a maximum of 60% of thetotal approved project cost or Rs. 15.00 Lakhs (75% in case of Micro Enterprises witha ceiling of Rs.l1.25 lakh) whichever is the lower, in case of individual MSMEapplicantlupto group of 3 MSME. In case of a group of SME applicants (more than3), the funding support will be a maximum of 60 % of the total approved project costor Rs. 25.00 Lakhs (75% in case of Micro Enterprises with a ceiling of Rs. 18.75lakh) whichever is the lower. The applicant MSME in the project is required tocontribute at least 40% (25% in case of Micro Enterprises) of the approved projectcost in cash as a matching fund. The applicant MSME may choose to adjust theproject scope and cost such that the funding grant and the matching fund can coverthe project cost on a 60:40 basis (75:25 in case of Micro units).

The funding support will be given to student project by way of a grant to a maximumof 75% of the total approved project cost or Rs 1.5 lakhs whichever is lower.

The funding support will also be provided for organising orientation workshop for"'"design consultants including study of global best practices and design clinic

programmes of other countries.

The funding grant will be reimbursed in 4 stages in 4 equal amounts. It shall be donein the following manner:

o Stage 1 - Strategy - 25%o Stage 2 - Concept - 25%o Stage 3 - Detail Design - 25%o Stage 4 - Implementation - 25%

However for smooth coordination with the administrative ministry andimplementation of scheme the headquarters of Design Clinics called Design Clinicregional centres and to have close and effective interactions with the office of the DC

. (MSME). It will have regional centers in other cities which are to be selected basedon the geographical distribution, availability of designers and Design Institutes andthe proximity of target clusters for design clinics interventions. The design clinicsRegional Centres in coordination with industries association, MSME-DIs and otherstake holders will organize Design awareness activities and design project activitiesacross the country. It will be involving through linkages and cooperation with Indianindustry and academia, R&D institutions and other sectoral organizations in itsmISSIOn.

4.1.6 Mobilization and co-ordination workshop for MSME officials

A provision has been made for a workshop for MSME officials each year to get themacquainted from development, new design development, to prepare and strategy for widedissemination of the scheme for the larger benefit of MSMEs. This will help in bridgingthe gap between the nodal agencies and MSME officials. The officials who will beselected and directly dealing with the scheme irrespective of the hierarchy. The workshopwill be for 5 days.

4.1.7 Seminars On Design Clinic Scheme

The purpose of these activities is to sensitize MSMEs about the usage ofdesign/innovation in various facets of their industry. A seminar will cover the designrelated topics in a broad way, with the intent to communicate the importance of design,its usefulness and its role in delivering business value. It would be delivered in lecture­style by one or more experts deliberating on a topic. The seminar will be followed by aQuestion and Answer session. A typical seminar would be of one day duration. Seminarswill be conducted for general awareness within the cluster to wide spread the schemes, itsbenefit, government initiatives etc.

4.1.8 Workshops (including need assessment survey)

A provision for workshop has been made in the scheme to help, identify and select theMSME units were design intervention will be made. The workshop will also help inconvince the MSMEs to adopt the most optimal design for that particular unit.

A workshop connotes a more focused study on design, with a well-defined "takeaway"for the MSMEs. The total time allocated for each workshop is 3 - 5 days. This will beginwith the experts visiting the cluster units and understanding the issues concerning thecluster. Thereafter, there will be training on design clinic solutions delivered by an expertor a group of experts in an interactive manner. This will be followed by preparation of aDesign Need Assessment Survey Report by the designated expert. The Design NeedAssessment Survey report will review the present state of the cluster, will identify areasof improvement and within that will identify specific areas which could be served bydesign intervention.

4.1.9 Promotional activities

Provision for wide dissemination of information regarding the scheme, current status etc.will be made available to the MSMEs through various Medias and agencies. The sanctionunder this activity will be made on a specific request from the implementing agency byPMAC on merit.

4.1.10 Orientation Programme for stakeholders of Design Clinic Scheme

Orientation programme will be organized for the stakeholders of Design Clinic Schemei.e., professionals, student designer, MSMEs, MSME associations, apex bodies and otherbeneficiary of the scheme across India. The duration of the orientation workshop will beof one day.

4.1.11 Study of Global Best Practices and Design Clinic Programme of Other Countries

The purpose of the visit is to provide the international exposure to the stakeholders tostudy the best design practices amongst MSMEs abroad and implementation thereafter.The visit includes members from MSMEs beneficiaries, implementing agencies andofficials of % DC (MSME).

4.1.12 National level Workshop on Design Clinic

This workshop will be conducted for selected cluster representatives, professional designpractitioners, academia, MSME officials in the field, etc., for evaluating the need ofdesign intervention in the cluster and making recommendation for framing policy

guidelines and identify catalyst amongst stakeholders particular to design aspects of thefield of cluster.

4.1.13 Project Duration

Project duration is expected to be less than one year.

4.2 The specific targets proposed to be achieved of the project / scheme may bementioned. These targets should be necessary measurable. These should also bemonitor-able, against baseline data. The baseline may be indicated.

The details of the activities along with tentative expenditure for XII Plan is asenclosed Annexure: B

4.3 The outcomes of the proposal to be achieved should be indicated. These outcomesshould be in the form of measurable indicators which can evaluate the proposal onquarterly/half yearly/annual/plan basis.

The most commonly mentioned benefits of design were improvements in the companyimage, the quality of products and internal and external communication, reduced cost, increasedprofits, and entry into new markets. Some salient benefits are given below, for example:

• Increases the value (utility) of the product to the user by considering the functional needsof the user and by making the product's user interface intuitive, safe, easy to use, easy tomaintain, etc;

• Increases the visual quality of the product by manipulating the form, line, proportion, andcolors of the product and considering the psychological and aesthetic needs of the user;

• Improves the ability to manufacture the product by simplifying the structure of theproduct, taking into consideration material choices, production processes, and assembly;

• Improves the ability to market the product by considering buyer behavior, objectives, andhopes, and informing buyers in a way that makes selection easier;

• Promotes rational standardization to increase the effectiveness of parts logistics,decreasing work in progress and inventories, decreasing the amount of needed toolingachieving larger purchase quantities, and thus decreasing units cost, etc.

• Promotes environmental issues such as low energy consumption, durability, aesthetictimelessness, fit for recycling, etc.

• Communicates the corporate vision and differentiates the product from the competitionthrough the visual qualities of the product;

• Improves internal communication by making product ideas into tangible prototypes;• Helps companies break into new markets by adapting products to local conditions and by

taking into consideration international competition.

In summary, well designed services and products are more likely to earn a higher premium, gaina bigger market share, be better quality and cost less to produce or deliver or service postdelivery.

Intended "outputs "of Design clinic scheme to MSME' s can be Iisted as under:

• Professional and economic help to first time buyers of professional design• Assistance and training for MSME' s in use of industrial design.• Effective design processes, superior products and services, market and commercial

successes, operational efficiency and higher return on investments• Better earning more satisfied customers• Production and delivery processes; products and services meeting a market and user­

centered approach• Integration of design into businesses with aspirations to succeed internationally as

exporters

4.4 Briefly explain the objectives of the other programmes/projects undertaken byMinistry/Dept which are in convergence with the objectives of proposed proposal.

Not applicable

4.5 Please indicate whether the proposal is for current Plan only or will continue in nextPlan also.

At present the proposal is for XII FY Plan and likely to continue in next FY Plan.

5. Gender Analysis of the Proposal

5.1 Briefly explain the specific objectives of the proposal relating only to women.

Not applicable

5.2 In case the proposal has gender components, please provide the followinginformation in tabular form as shown below.

Not applicable

---------- -- - - --

6 Project/Proposal Design

6.1 Briefly explain the project/proposal Design. This should include all components ofthe project.

6.1.1 (Scope of the project)

• To assist local enterprises with engaging external design expertise in the form ofconsultancy.

• Projects supported should lead to new design strategies, and/or design-relatedproducts and services.

• Projects supported must be impactful and effectively develop the capabilities ofthe local enterprise.

• To keep track of the latest design development/innovation, implementing thesame and competitive to participate in global market.

6.1.2 Assumptions used

The assumptions are based on Evaluation Study carried out. The details are as under:

The scheme is already effective among the MSMEs across the country. More MSMEswill be utilizing Design Clinic Scheme in future for development of quality newproducts.

The students will be assisting MSMEs to design and develop products require bythem.

Regional centre will be facilitating all the assistance to the MSMEs for design anddevelopment of products with latest art of technology to compete in the internationalmarket.

Multiple agencies such National Institutions, MSME Tool Rooms, MSME TDCs andaccredited industry associations working simultaneously would be able to increase thereach and coverage of the scheme and set in a design culture amongst a far greaternumber of MSMEs.

Awareness programmes / workshops/ orientation programme to be conducted byRegional Centres will motivate MSMEs to innovate/design of new products byavailing Design Clinic Scheme with the help of design consultants.

National Workshops proposed will be giving very good exposure to participatingMSMEs and officers from the department regarding knowledge about designing anddeveloping new products at world class level.

The cost for conducting awareness programmes/workshops/orientation programme isbased on existing price index under different expenditure head. The cost includeschange of price index in future.

The ratio of Government of India (Gol) contribution to beneficiaries for the designclinic projects is kept at 75%: 25% and 60%: 40% for micro and SME respectively.

The Study's of Global Best Practices and Design Clinic Programme of other countrieswill be covering expenses of visiting MSMEs for on-site international exposure ondesign aspects.

6.1.3 Technology

Technology adoption is a catalyst not only for growth among India's micro, smalland medium enterprises (MSMEs), but for the growth of the Indian economy as awhole. To sensitize and bring the MSMEs, design experts, design fraternity,scientist, academician, etc., on a common platform through design semmars,workshops, orientation programmes to explore new design projects.

6.1.4 Size/Specifications/ Layout Plan

Not applicable

6.1.5 Plant & Machinery

Not applicable

6.1.6 Others (Please specify)

The components of the project should be carved out from the FeasibilityReport/Project report. The study/ investigations on which project parameters arebased should be clearly indicated.

The components of the project are based on evaluation study report.

a. In case the proposal is specific to any location, area and segment ofpopulation please state the basis for selection. Details regarding specialphysical features, technology, etc., may be given.

The scheme is not location specific. It is under implementation throughout thecountry.

b. Please indicate whether the proposal is secured against natural/ man-madedisasters like floods, cyclones, earthquakes, tsunamis, etc. If the proposal

involves creation/ modification of structural and engineering assets or changein land use plans, disaster management concerns should be assessed.

Not applicable

c. In case of beneficiary oriented proposal, the mechanism for identification ofthe beneficiary and the linkage of beneficiary identification with UIDnumbers, on a voluntary / non-mandatory basis, may be indicated.

Not applicable

d. Wherever possible, the mode of delivery should involve the Panchayati RajInstitutions and Urban Local Bodies. Where this is intended, thepreparedness and the ability of the Panchayats for executing the proposalmay be indicated. Ifexceptions are to be made, the reasons may be explained.

Not applicable.

e. Whether the land required for the proposal is in possession of the agency. Incase the proposal involves land acquisition or environmental clearances, thespecific requirements and the status in this regard may be indicated.

Not applicable.

6.7 The legacy arrangements after the scheduled proposal duration may be mentioned.In case the proposal creates assets, arrangements for their maintenance and upkeepmay be stated. (For example the proposal assets may be taken over and maintainedby the State Government/ PRIs, ULBs).

Not applicable.

6.8 Please indicate:

• Inter-linkages with other schemes mainly in terms of coverage, impact, outcomes,etc.

There is no inter-linkages with other scheme.

• Steps taken towards convergence with other schemes to achieve the intendedoutcomes may also be stated.

There is no convergence with other scheme.

• Steps taken towards convergence in flow of funds from other schemes.

No flow of funds from other schemes.

7. Proposal cost

7.1 Please provide the proposal cost estimate for itsa break-up of year-wise, component-wise expensesrecurring and recurring expenses.

scheduled duration along withsegregated into non-

The project will run for entire XII Five Year Plan period and expenditure will distributedhomogeneously throughout the period. The year-wise expenditure during the XII Planperiod in annotated form is given below:

(All figures in crore)

Year 2012-13 2013-14 2014-15 2015-16 2016-17

Expenditure 6.70 7.51 14.00 36.05 47.0025(estimated)(GoIcontribution)-non-recurnng

7.2 In case the land is to be acquired, the details of cost of land and cost ofrehabilitation/resettlement may be provided.

Not applicable.

7.3 Estimated expenditure on proposal administration (including expenses onconsultants, monitoring, evaluation, lEe, etc.) may be separately indicated.

Operating Expenses for Design Regional Centres to be made by DC (MSME) throughimplementing agencies (Rs.l ,000 lakh). This will be paid on actual basis.

Implementing agencies fees (Honorarium for hiring ofDesigner/consultant/scientist/professors/ academicians, utilizing their services andinfrastructure of different Institutes) @ 14% of Gol, (Rs.1365 lakhs). This will be paid onactual basis.

7.4 The basis of these cost estimates along with the reference dates (it should not bemore than six months old) for normative costing may be provided. Please indicatethe firmness of the estimates, component wise, with the extent (+ / -) of the expectedvariation.

The basis of the cost estimates is based on the evaluation study report and feedbackreceived from MSME associations/stakeholders.

The cost based on the previous experience of implementing various activities of DesignClinic Scheme during XI Plan period and the tentative cost estimates are based on March,2013 prices. Further, the contribution from the Govt. of India is stipulated as 60 % forindividual projects and group of MSME projects, hence the estimates are unlikely to .undergo variations. Any additional cost incurred on the project will be met by MSMEs(beneficiaries ).

7.5 In case the proposal involves payout of subsidy, the year wise and component wiseexpected outgo, up to the last year of payout, may be indicated.

Not applicable.

7.6 In case the proposal intends to create capital assets, employ specialised manpoweror involves other activities that necessitate a Recurring Cost of Capital Expenditure(RCCE) (e.g., maintenance and upkeep costs of assets, salary costs of manpower,etc.) over the lifetime of the asset, such expenditures, on an annual basis, may beindicated in the proposal.

;

The scheme proposes providing of Infrastructure/ hardware/software/furniture / supportingstaff to implement and monitor the scheme.

Further, 2 more Regional Design Centres have to be created. The recurring cost for runningof 2 new Regional Design Centres including purchasing of computers, laptop, furniture /supporting staff will be met from the operating expenses head payable to theimplementing agencies. It is expected that services of more number of implementingagency will be utilised in future, accordingly, following provisions are made in the scheme.The details of which are as under:

1. Setting up of Design Centre by implementing agencies11. Need based capital equipment purchase will be allowed with the approval of

PMAC

7.7 It may also be stated whether the agency which would be assigned this legacyresponsibility has been consulted and has agreed to bear the continuing recurringexpenditure. (e.g., the State governments may need to incur the maintenance andupkeep costs of assets created under Plan schemes).

Not applicable

7.8 The cost towards salary/ fees/ emoluments of the proposal human resources as beingproposed should be indicated (procedure for seeking approval for human resourcerequirements is detailed at para-9 below).

Not applicable

7.9 The component of the costs mentioned at 7.1-7.8, that will be shared by the stategovernmentslPRIlUser Beneficiaries may be indicated.

Not applicable

7.10 In the event of fund transfer being made to State Govts/ local bodies or otherorganisations, "grants for creation of capital assets" may be indicated separately.

Rs. 100 lakh has been earmarked for XII Plan as grants for creation of capital assets tothe implementing agencies.

8. Project/ Proposal: Financing

8.1 The source of financing for the proposal may be indicated. In case of proposalalready included in the FYP, the specific earmarking may be mentioned.

The project is included in XII FYP. The total allocation under XII Plan is Rs. 120 crore(copy enclosed as Annexure-C).

8.2 Whether the funding requirements have been fully tied up with PlanningCommission may be indicated. The quantum of the Plan allocation may beindicated.

Yes, Rs. 120 crore has been allocated for XII Plan period.

8.3 If there are gaps in the financing of the proposal, the sponsoring agency mayindicate how such gaps in FYP as well as the Annual Plans will be addressed.

Not applicable.

8.4 If external sources are intended, the sponsoring agency may indicate whether suchfunds have been tied up. In case firm commitment is not available, alternative plansfor arranging funds may be indicated.

Not applicable.

8.5 In case of partial allocation of funds for the proposal, then the components whichmay be removed/reduced may be indicated.

Not applicable.

8.6 Please provide the following details in respect of project proposal:

• Debt-equity ratio along with justification.

Not applicable.

• In case of, funding from internal resources (IR), availability of IR may be supportedby projections and their deployment on various projects.

Not applicable.

• Please indicate funding tie-ups for loans components both domestic andforeign, along-with terms and conditions of loan based on consent/ comfort letters.

Not applicable.

9. Proposal: Human Resources

9.1 In case posts (permanent or temporary) are intended to be created, a separateproposal may be sent on file to Personnel Division of Department of Expenditure.Such proposals may be sent only after the main proposal is recommended by theappropriate appraisal body (SFC, EFC, etc.).

No Permanent! Temporary posts are to be created.

9.2 In case outsourcing of services or hiring of consultants is intended, brief details ofthe same may be indicated. Itmay also be certified that the relevant GFR provisionswill be followed while engaging the agency/ consultant.

The agencies have been proposed to deliver the scheme during XII Plan period asindicated in 9.1. It is further certified that the relevant rules will be followed whileengaging the agency/consultant and due approval of the competent authority will be takenas per the relevant GFR provision.

-------------------------------

9.3 In case additional manpower requirement, please indicate the phased requirementover the proposal timeline (i.e. year-wise break-up of the manpower requirement)

Not applicable.

10. Proposal viability

10.1 In case of proposals which have identified stream of financial returns, the financialinternal rate of return may be calculated. The hurdle rate is considered at 12%.

Not applicable.

10.2 In case of proposals where financial returns are not readily quantifiable (typicallysocial development proposals), the measurable benefits/ outcomes may be indicated.

The Design Clinic Scheme as conceived by National Manufacturing CompetitivenessCouncil (NMCC) is for increasing the competitiveness of the MSMEs. It is also aimed toprovide a common platform and to provide expert advice and cost effective solutions onreal time design problems, resulting in continuous improvement and value addition forexisting products, thereby enhancing overall competitiveness of MSME sector.

The most commonly mentioned benefits of design were improvements in the companyimage, the quality of products and internal and external communication, reduced cost,increased profits, and entry into new markets. Some salient benefits are given below, forexample:

• Increases the value (utility) of the product to the user by considering the

functional needs of the user and by making the product's user interface intuitive,

safe, easy to use, easy to maintain, etc.;

• Increases the visual quality of the product by manipulating the form, line,

proportion, and colors of the product and considering the psychological and

aesthetic needs of the user;

• Improves the ability to manufacture the product by simplifying the structure of

the product, taking into consideration material choices, production processes, and

assembly;

• Improves the ability to market the product by considering buyer behavior,

objectives, and hopes, and informing buyers in a way that makes selection easier;

• Promotes rational standardization to increase the effectiveness of parts logistics,

decreasing work in progress and inventories, decreasing the amount of needed

tooling, achieving larger purchase quantities, and thus decreasing unit cost, etc.

• Promotes environmental issues such as low energy consumption, durability,

aesthetic timelessness, fit for recycling, etc.;

• Communicates the corporate vision and differentiates the product from the

competition through the visual qualities of the product;

• Improves internal communication by making product ideas into tangible

prototypes;

• Helps companies break into new markets by adapting products to local conditions

;;; and by taking into consideration international competition.

In summary, well designed services and products are more likely to earn a higherpremium, gain a bigger market share, be better quality and cost less to produce ordeliver or service post delivery.

Intended "outputs "of Design clinics to MSME's can be listed as under:

Professional and economic help to first time buyers of professional design

Assistance and training for MSME's in use of industrial design.

Effective design processes, superior products and services, market and

commercial successes, operational efficiency and higher return on investments

• Better earning, more satisfied customers

•

•

•

• Production and delivery processes; products and services meeting a market and

user-centered approach

• Integration of design into businesses with aspirations to succeed internationally as

exporters

11. Project! Proposal Implementation and Monitoring (PMAC)

11.1 Implementing agency (s) may be indicated.

At present National Institute of Design (NID), Ahmedabad, CSIR, New Delhi, IISc,Bangalore are implementing agencies for Design Clinic Scheme. It is proposed to have morenumber of implementing Agencies such as HTs, National Institutions, MSME Tool Rooms,

- - - ---------------

..MSME TDCs and accredited industry associations as recommended in the Evaluation StudyReport.

11.2 The administrative structure for implementing the proposal may be stated. Usuallynew structures/ entities, etc. Are, by and large, to be avoided. In case new structuresare intended to be created for administering the scheme, the details of suchstructures and specific justification for the same may be provided. Such newstructure should be proposed only if it is has been established after due analysis,that existing structures cannot be levered for the proposed/additional work.

/

There is a project Monitoring and Implementation Committee for monitoring andimplementation of the scheme. The committee is headed by AS&DC, MSME as itsChairman.The following is the proposed constitution of the committee.

Sr.No. NamelDesignation

1 AS&DC(MSME), Chairman

2 Joint Secretary, NMCC, Member

3 Joint Secretary/Director DIPP, Member

4 EA, IFW, M/o MSME, Member

5 Representati ves from NIDIIISc/CSIR Implementing agency,Members

6 Representatives from IITs, NITs & other institutions}

7 Members from designer fraternity

8 Representatives from Industry/Industry Associations

9 Joint Development Commissioner, % DC(MSME)- Member-Secretary

10 Other invitees as decided by PMAC-

11.3 The completion schedule of the proposal indicating timelines of activities should beprovided in PERTlBar Chart along with critical milestones.

•

Government of India grant will be released to implementing agencies, which in turnwill release the grant as per following flow chart:

0/0 the DC (MSME)

IFunds given to ImplementingAgencies (through

RTGS)

IDesign company/academic institution and the

applicant MSME

• For each successful application, the co-applicant designer/design company/academicinstitution will be the recipient of the approved grant but both the designcompany/academic institution and the applicant MSME have to enter into a grantagreement with the implementing agency. The grant agreement will be signedbetween the implementing agency and the applicants. Implementing agency willprepare an appropriate legal document (duly incorporating GFR provisions) for thispurpose. The grant agreement shall contain (a) the terms as set out in the approvalletter from the implementing agency (b) the terms and conditions; and (c) the projectproposal in the devised format attached to the approval letter from the implementingagency.

11.4 Mode of implementation: Departmental/ Contract/ Turnkey contract/ EPC/ PPP,etc. with justification may be given.

Itwill be implemented through implementing agencies as per the guidelines from % DC(MSME), New Delhi.

11.5 Nodal officer identified / appointed for being directly in charge and overseeingprogress of the proposal may be indicated. Details about his status, past experiencein executing similar proposals and balance tenure left for steering the proposal mayalso be mentioned. He/ She should normally be appointed for entire duration of theproposal.

The implementation of the scheme will be done by 010 DC (MSME). A projectmonitoring & advisory committee (PMAC) under the scheme will review & guide theimplementation of the scheme periodically.

The Scheme is to be implemented by the institutions as mentioned below:

1.

H.

~ HI.

National Institute of Design (NID), Ahemedabad.Indian Institute of Science (lISc), Bangalore.Council of Scientific and Industrial Research (CSIR), New Delhi.

During the XI Plan period, National Institute of Design, Ahmedabad has deployed a teamof officers with suitable qualification and experience in delivering the similar schemes.Further, 2 more implementing agencies i.e., lISc & CSIR have been roped in to work as aimplementing agencies during the XII Plan period. Similarly, it is expected that the newimplementing agency will deploy their manpower.

As per the Evaluation Study Report the scheme can also be implemented through thefollowing institutions/ industry associations:

1. Indian Institute of Technology (Industrial Design Centre), New Delhi, Mumbai,Kanpur and Guwahati and all other IITs.

H. Footwear Design & Development Centre, Noida -for footwear related designproject.

111. Central Institute of Footwear Technology, Agra & Chennai.IV. National Institute of Technology.. v. MSME Tool RoomsVI. MSME TDCsvii. Accredited industry associations

•11.6 The monitoring framework preferably on MIS for the proposal may be indicated.

The arrangements for audit/social audit of the proposal may also be stated.

1.

11.

Ill.

~ IV.

V.

VI.

Project Monitoring & Advisory Committee (PMAC) will guide and monitor thescheme at different stages of implementation. The broad roles and responsibilities ofPMAC will be:

To review and approve the proposal of Implementing Agency for the settingup of design centre and regional centers.To approve detailed procedures and strategy prepared by ImplementingAgency for the implementation of various components of the schemeTo approve proposals submitted by Implementing Agency for conductingseminars and workshopsTo review and sanction design projects for individual MSMEs!group ofMSMEs!students.To discuss and approve plan of action required for achieving the objective ofthe scheme.Any other issues related to the scheme.

12. . Proposal sensitivities/uncertainties

12.1 Any foreseeable constraints/ uncertainties which can affect the technical design,costing and implementation of the proposal may be indicated.

Since the scheme is for continuance from XI to XII Plan, it has been observed thatawareness through organizing design seminar and orientation programmes for designershave been created among MSMEs!MSME associations and designing. Further, it isproposed to increase number of design awareness seminars in XII Plan also. It isexpected that no such foreseeable constraints! uncertainties will be there.

12.2 The likely impact of these constraints/uncertainties on the proposal parameters maybe stated. In particular, the sensitivity of the proposal cost, proposal schedule andproposal viability towards the possible constraints/ uncertainties may be mentioned.

Not applicable.

13. Mandatory approvals! clearances:The details regarding the requirement of mandatory approvals ! clearances of variouslocal, state and national bodies and their availability may be indicated in a tabular form

Not applicable.

14. Consultations with the Public, State Governments, External Research Agencies,Think Tanks, etc.

, 14.1 To the extent possible and practicable, such consultations may be done by theAdministrative Ministries. The draft Proposals may be placed on the web site of thesponsoringMinistries and comments invited from the general public. The draft proposalsmay be formulated / finalized taking into account such comments. Details in this regardmay be indicated in the EFC /PIB memo.

Not applicable.

15.

15.1

Concurrence of Financial Advisor

Comments/Concurrence of Financial Adviser may be indicated along with reply ofthe Administrative Ministry.

The comments/ concurrence of IFW along with the comments of % DC (MSME) isplaced at Annexure -D.

16. Approvals:

16.1 Please indicate the specific points on which approval of EFCIPIB is sought.

Approval of the Standing Finance Committee (SFC) for Implementation of the scheme."Design Clinic Scheme for design expertise to MSME's Manufacturing sector" againsttotal cost of Rs. 149.00 crore with proposed Govt. of India Contribution of Rs. 111.25crore during the Ith Plan period, which also includes the expenditure involve under thescheme carry forward from XI Plan to XII Plan and modifications in some of thecomponents of the scheme.

- - - - - -------------------

(Rs. In lakh) Annexure: B

• 'J

Year-wise proposed target & expenditure under the Design Clinic Scheme during the XII Plan period

SI. Activity Rate 2012-13 2013-2014 2014-15 2015-16 2016-17 Scheme TotalNo

Phy. Financial Phy. Financial Phy. Financial Phy. Financial Phy. Financial Gal. Pvt. TotalQty. Gal. Pvt. Qty. Gal Pvt. Qty. Gal. Pvt. Qty. Gal. Pvt. Qty. Gal Pvt.1. Expenditure LS - - - - - - 2 100 - - - - - - - 100 - 100towardssetting up oftwo morenew DesignRegionalCentres forImplementingAgencies

2. Operating LS - 93 - - 95 - - 200 - - 250 - - 362 - 1000 - 1000Expenses forDesignRegionalCentres to bemade byDC(MSME)throughimplementingagencies

3. Implementing LS - 10 - - 23 - - 300 - - 432 - - 600 - 1365 - 1365agencies fees(Honorarium/hiring ofDesigner/consulta nt/scientist/professorsof different

Institutes) @14% (approx.)

-Rate 2012-13 2013-2014 2014-15 2015-16 2016-17 SCHEMETOTAL

Phy. Financial Phy. Financial Phy. Financial Phy. Financial Phy. FinancialQty. Gal Pvt. Qty. Gal. Pvt. Qty. Gal. Pvt. Qty. Gal, Pvt. Qty. Gal. Put Gol. Pvt. Total

4. Mobilisation 10 - - 1 10 - 2 20 - 2 20 - 50 - 50&CoordinationWork Shopfor MSMEofficials

5. ActivityDesignAwarenessProgrammes

5 Seminars 0.6 9 5.4 - 109 65.4 - 150 90.0 - 162 97.2 - 170 102 - 360 - 360(a) On DesignClinic Scheme

5 Workshops 5 14 52.5 17.5 50 187.5 62.5 65 243.75 81.25 70 262.5 87.5 76 285 95 1031.25 343. 1375(b) (including 75needassessmentsurvey)(75% Galfunding)

, I

6 Design ClinicProjects

-'

Rate 2012-13 2013-2014 2014-15 2015-16 2016-17 SCHEMETOTAL.-Gol. Pvt. TotalQty. Gol. Pvt. Qty. Gol. Pvt. Qty. Gol. Pvt. Qty. Gol. Pvt. Qty. Gol. Pvt.

6(a Student 2 10 15 5 15 22.5 7.5 20 30 10 25 37.5 12.5 30 45 15 150 50 200) Projects (75%

Gal funding)6( Individual 15 12 135 45 18 202.5 67.5 20 225 75 30 337.5 112.5 40 450 150 1350 450 1800b) Micro

projects (75%Gal funding)(upto 3 units)

6(c Individual 25 25 375 250 33 495 330 20 300 200 25 375 250 44 660 440 2205 1470 3675) SME projects "

(60%GOIfunding)(upto 3 units)

6( Group Micro 25 10 187.5 62.5 17 318.75 106.2 17 318.75 106.2 18 337.5 112.5 18 337. 112.5 1500 500 2000d) projects {75% 5 5 5

Gal funding}(more than 3units)

6(e Group SME 40 5 120 80 10 240 160 12 288 192 15 360 240 .. 18 432 288 1440 960 2400) projects {60%

Gal funding}(more than 3units)

7 Promotional LS 7 - - 5 - - 25 - - 30 - - 33 - 100 - 100Activity,Website,Publicity,MiscellaneousExpenses, etc.

--

Qty. Gol. Pvt. Qty. Gol. Pvt. Qty. Gol. Pvt. Qty. Gol. Pvt. Qty. Gol. Pvt. Gol. Pvt. Total8 Orientation 2 2 4.00 - 7 14.00 - 15 30.00 - 20 40.00 - 31 62.0 - 150 - 150

Programme 0forstakeholdersof DesignClinic Scheme

9 Study of 50 - - - - - - 1 50 - 2 100 - 3 150 - 300 - 300Global BestPractices andDesign ClinicProgrammeof OtherCountries

10 National level 10 - - - - - - - - 1 10 - 1 10 - 20 - 20Workshop onDesign ClinicTOATl 11125.25 3773.75 14900

Note: The estimated expenditure mentioned at sl. 6(a), 6(b), 6 (c), 6 (d) & 6 (e) are approximate for the year 2012-13 & 2013-14 and is based on statisticprovided by NID, Ahmedabad

4.2 The details of the activities along with tentative expenditure for XII Plan is as under:

(Rs. In lakh)

S.No. Activity Rate Qty. GoI MSME Totalcontr. Contr.

Expenditure towards setting LS 100 - 100.00up of two more new Design

1 Regional Centres forImplementing Agencies

Operating Expenses for LS 1000 - 1000.00Design Regional Centres tobe made by DC(MSME)

2 through implementingagencies

Implementing agencies fees LS Implementi 1365 - 1365.00(Honorariumihiring of ng agenciesDesigner/consultant/scientis fees of 14%

3 t/professors of different (approx.)

Institutes) @ 14% (approx.)

4 Mobilisation & 10 5 50 - 50.00Coordination Work Shopfor MSME officials

S.No. Activity Rate Qty. GoI MSME Totalcontr. Contr.

Design Awareness Programmes5(a) Seminars 0.6 600 360 - 360.00

On Design Clinic Scheme5 5 (b) Workshops 5 275 1031.2 343.75 1375.00

(including need assessment 5survey)(75% GOI funding)Design Clinic Projects

6(a) Student Projects (75% GOI 2 100 150 50 200.00funding)Individual Micro projects 15 120 1350 450 1800.00

6 (b) (75% GOI funding) (upto 3units)

Individual SME projects 25 147 2205 1470 3675.006 6 (c) (60% GOI funding)

(upto 3 units)

Group Micro projects (75% 25 80 1500 50Q 2000.006 (d) GOI funding) (more than 3

units)

Group SME projects (60% 40 60 1440 960 2400.006 (e) GOI funding) (more than 3

units)Promotional Activity, LS - 100 - 100.00Website, Publicity,

7 Miscellaneous Expenses,etc.

Orientation Programme for 2 75 150 - 150.008 stakeholders of Design

Clinic SchemeStudy of Global Best 50 6 300 - 300.00

9Practices and Design ClinicProgramme of OtherCountries

10 National level Workshop on 10 2 20 - 20.00Design Clinic

Total 11125.25 3773.75 14900.00

----------------- - - --

Ion

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~~~.;~_~~~~~!Et~[tI.~tUI~t1~li;1r4)la~iM~11~f(jjtthe 12thPlan Rs.24124~OOcr<>res;;. .Fund; as announced

D'te:ak;'111:r-t)r"-bijcl!ftet;~':U:l'2Ly.~of.tll~rej:enf~)F~aniiza'tiolns/Di'visions

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I

Annexure""

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40~OO·14.00

10.00

301.00·

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ANNEXURE:DOffice of the Development Commissioner(Micro, Small and Medium Enterprises)

The comments of If W and corresponding response ofthis office :(0/0 DC (MSME)j IS givenbelow:

1.r S.No. Comments of IFW Response of DC(MSME)

Draft EFC mav be prepared In Ithe revised format. ;\ copy of the enclosed II revised format calculated by the II

Deptt. of Expenditure on31.03.2014 is placed below. I

I----+-\\-'h-i-Ie-fi-m-a-n-c-ia'-I-b-re-a-k-·-l-Ip-o-f-R-s-.+-R-o-a--dmap in terms of physical targets for each year under Xln!I I 1.26 crore of GoI grant over Plan for DC Scheme is provided.

five years of 12111 plan 'lave beengiven (page 21) correspondingroad map III terms of physicaltargets for each year for thescheme has not been provided.

--~----+-~-~~--~~~----The draft EFC proposal seeks toopen up the implementingagency to many other institutesand organizations apart fromNID, IISC and CISR. I1Ts. NITs.Tool Rooms and TechnologyCenters would also becomeimplementing agency as per theproposal. With so many

I Implementing agencies it may beI difficult to monitor and oversee country with various expenditure.I implementation of the scheme.Ii Course corrections will also be! difficult with so manyt ~l1plementing agencies. .,[~ I Micro units are to be funded with l'l5L~~i;~g-iI~tera~ti~~~~-~~~lh~chell1-~~-jndustryAssociations across II I a ratio 01'.75:25 as (jol I the country at various platform representations from micro II assistance: Unit contribution industries requested for sharing on the basis 75:25 because of I

instead of 60:40 at present. This limited fund available with them for desizn activities. Based I~ I

may be justified since micro units on the above feedback, it recommended for 75 :25 ratio for imav be findina it difficult to micro unit. This is based on the recommendation of the icOI;tribute at the~existing ratio of evaluation study conducted by NI ESBtJD. Noida. I60:40. This has also been I Irecommended bv the evaluation I Istudy. It is. ho~ever, not clear I ,III

whether 75:25 is based on groundreality or a thumb rule fixed Iarbitrarilv. i2 Nation'al \vorC~I~ops are a~;~w Inle'-N~~~Ollal Le~iel -'Wo~ksh';~J--\~T!I~be cO~lduct~I~!]l~re-jfeature being proposed Rs. 10.00 I expert Designers will be invited from India as well as abroad ilakh for a single workshop being I to interact with the Indian MSMLs. Also the success stories I

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Draft EFC IS prepared as pre-revised format and reply IS

0/0 DC (MSME). M.O has got field offices 111 every State. IThese officers will help In monitoring. implementation of IDesign-clinic centres and I1C\\ Design clinic centres under [consideration. Also. a dedicated team exists 111 % DC I(MSME) for supervismg implementation of Design Clinic IScheme. The scheme will be reviewed periodically through IProject Monitoring Advisory Committee (PMAC) and also IPICs at regular intervals. I

II

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, This will increase the outreach or the scheme throughout the

proposed seem to be on a higher I will be sho\'\'c~1secl to cncour~H!.e the I\IISMEs. 1~side. I len:I workshops will bring closer the various [

i stakcholders/Mx 1\11l s/irnplementi ng agencies on a common iI I, platform. I

IThe workshop will be conducte~i for period 0.1' 2 days. . IThe expenditure for 2 days wlil cover vanous expenditure,

I like, advertisement through banners. pu~licity n:aterial at [t pronunent places. Also course material, stauonery of I

I international standard. will be distributed during the II i workshop. Hiring or space for conducting National level I

I Workshop. !

II In .addit~ol: T~!honorari.ul~l. etc., will be paid to expert,'!

, I desisner/scientist/academicians. etc. i

I . -i "en~e. it is justified for expenditure of Rs. 10.00 lakh. !,1-1-6-.--+-0-n-p-a-g-e-I-3-0-j-··-(.·-:iI-·a-[-t-E-I~-'C-'.-a[Till' 600 numbers or seminar. 275 workshop and 75!

, Inumber of similar activities have i orientation programmes are different from each other with Ibeen proposed. It should be different objective. i

ensured that there are no These were existed in earlier EFC too (i.e. XI Plan). Same!overlapping or repetitron of has been continued as found effective. The Evaluation Study iactivities. For example, 600 I has also recommended to increase their activity. !seminars. 275 workshops and 75 I I

. . Iorientanon programmes have i. Ibeen proposed. I IFees being proposed including '-O~~erating expenses covers hiring of space, staff salary, video Ioperating expenses for conferencing. telephone/fax/internet/ AMC cost. etc., charges /'implementing agencies seem to to be incurred by implementing agencies to monitor thebe very high. Secondly. Regional Design Centres across India. iimplementing agencies fee as Also. this willinclude costing incurred in day today running iwell as operating expenses for and monitoring ofthe scheme. ~Regional Centers of the same Iimplementing agency are being Further, planned under the SI. No. 5 & 6 (i.e., Seminars, Iproposed. For same activities workshop. professionals design projects & student projects) !funding are being proposed will be reviewed by the Project Implementation Committee Itwice. (PIC). Thereafter it will be put up for the approval of PMAC. I

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The expenditure incurred by the implementing agencies I(Honorarium for Designer/consultant/scientist/professors/!academicians, utilizing their services and infrastructure of idifferent InstituteS)@14%(approx.)OfGOlfortheeffective,iimplementation of the scheme.

1 II :

! The above expenditure are very much needed for successful I[I implementation of Design Clinic scheme. Also. it is proposed II to have two more new Design Regional Centres (expenditure II includes purchase of furniture. hardware and software) and!

Ialso upgradation of the existing hardware and software in the Ipresent plan. i

I !I Ii The expenditure for the above is as per existing price index I

11 and is not on the hizhcr side. I

IHence. implementing agencies are not paid twice as these /1

activities and projects are different.

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7.

.. Observation/Comments from Ministri_es/Departments on SFC of Design Clinic scheme andOffice of DC (MSME) reply/Remarks

S.No. Observation/Comments fromMinistries/Departments

Office of DC(MSME) reply/Remarks

1. M/o Cornmerce and Industry, Deptt. of IP&P(IPR-V Section)

a. In order to sustain and to take the Scheme In the Xlth Plan, NID was the singleto more and more needy sectors of MSMEs, a implementing Nodal Agency forsingle Nodal Agency approach needs to be implementation of Design Clinic scheme.continued in the interest industrial design In the Evaluation study report it has beenneeds of the MSMEs in the country. proposed to include more Agencies to be

nominated on nomination basis fordelivering the scheme along with NID. Onthe basis of the Evaluation study reportas on date two more implementingagencies (i.e., IISc, Bangalore & CSIR,NewDelhi) have been included.

b. The Scheme may be implemented on actualcost + fixed percentage of fee basis forrealizing various targets within the overallbudget proposed in EFC. Hence, there is aneed for revision of the estimated operationalcosts and the fee component of the Scheme.

The operational cost and ImplementingAgencies fees have been taken based onthe Evaluation study report andprevailing market rates and same ismentioned in sl. 2 and 3 of para 2.2 (b).

c. Based on the implementation of the Schemeby NID during i t" Plan, this Department feelsit is neither feasible nor practical to have morenodal agencies for implementation of theScheme from different national levelInstitutions as this may impinge on thesystems and practices and rules/regulations ofdifferent Institutions and affect the smoothimplementation of the Scheme.

The suggestions made in the EvaluationStudy report to bring more such NationalInstitutions, MSME Tool Rooms, MSMETDC and accredited industry associationsat the Apex level in order to sustain themomentum. Multiple agencies workingsimultaneously would be able to increasethe reach and coverage of the schemeand set in a design culture amongst a fargreater number of MSMEs.

The above initiative will help in enhancingoutreach and achieving the target andthe competition among theimplementing agencies.

i 2. Mlo Finance, Deptt. Of Expenditure

AS per this Deptt. OM No. 24(35}/PF-11dt. zs" Title of the EFChas been changed as SFC.August, 2014 the appraisal of the schemecosting less than Rs. 500 crore are within the Instructions of the said a.M. noted.delegated powers of the SFC under the EFC/SFC was circulated to the relevantChairmanship of Secretary, consisting of Ministries/Departments, no suchFinancial Advisors and Joint Secretary/Director comments have been received having theof the concerned similar scheme for MSMEs. However,Ministry/Department/Division as members. Ministry of HRD mentioned that in their

comments, they have a schemeFurther it may be ensured that the "National Initiative for establishment of'instructions given under the said OM are 20 Design Innovation Centers, Openstrictly followed. Design School and National DesignIn addition, as suggested vide our OM of even Innovation Network" and suggestednumber dated zs'' October, 2014 the Ministry MSME may utilize the services of theseshould seriously explore the possibility of Design Innovation Centers.merging this scheme as a sub-scheme ofanother existing central scheme. The instant SFC is concerning with

competitiveness enhancement of MSMEsthrough design intervention.

3. Mlof Heavy Industry & Public Enterprises, DHI supports the proposal contained inDeptt. Of Heavy Industry (DHI}-Coordination Draft Note for SFC.Section

4. National Manufacturing CompetitivenessCouncil (NMCq

Around 20% of the expenditure was made on The provisions have been made for morethe seminar/workshops during the first phase nos. of implementing Agencies. Theof the programme, as awareness was Awareness programme is planned for thedesirable in the take off period of the project. new implementing agencies.In the second phase, most of the share shouldbe meant for core Design clinic activities and The Awareness throughthe component of awareness be lowered to seminars/workshops is an important partthe bare minimum. This apart, based on the and necessary for effectiveexperience so far of MSME in the implementation of the scheme. Hence,implementation of this scheme and common expenditure on this part has been kept inqueries received thereof, it is suggested to higher side to organize more numbers ofdesign and upload appropriate Frequently programmes for sensitizing awarenessAsked Questions (FAQs) and their answers in among the MSMEs.this regard for public awareness/clarity.Accordingly, the NMCC supports the proposal Frequently Asked Questions (FAQs) of thesubject to the condition that the expenditure scheme has already been uploaded.

5.

on awareness Seminars and Workshops andneed analysis be restricted up to 2% of thetotal budget.

Planning Commission

Project Design:

1. Modification proposed in the existingscheme needs to be explicitly mentioned forthe purpose of continuation of the schemein the iz'' FYP.

2. Design Clinic Secretariat to work asHeadquarter of Design Clinic Scheme isproposed to be located in Delhi with regionalcentres in other cities (para 5.1.6, pg 16 ofEFCMemo), however no details such as costof hiring the space, people etc. is mentioned.Since NID and other implementing agencieswould be basically implementing the scheme,there is apparently no justification in having aseparate office for coordination work. Itshould be handled by the divisionadministrating the Scheme in the Ministry.

3. The proposal to include more agenciesalong with NID for implementation of thescheme during the iz" Plan is accepted.However, the criteria for selection of theagencies need to be clearly incorporated inthe EFCmemo/guidelines of the scheme.

Achievement of 11th Plan:

4. The evaluation study does not clearlyindicate how the Scheme has been able to

Continuation of the scheme in the XllthPlan and modifications of the existingscheme have been made based on theEvaluation Study Report. The proposedmodifications has been incorporated inthe SFCMemo at 2.2 (b) and 3.2.

In the current SFC proposal no DesignClinic Secretariat was proposed.However, comments seem to be givenbased on previous EFCproposal.

In the proposed SFCat column 3 of para2.2 (b) (page 7), the implementingagencies fees (honorarium for hiring ofdesign er/ consu Itant/ scientist/ professor /academicians, utilizing their services andinfrastructure of different institutes) @14% (approx.) of Gol made admissible tothe implementing agency includes all theadministrative expenses.The selection of agencies has been madeas per the suggestions made in theevaluation report which have beenincorporated in the SFC Memo and theScheme guidelines for the Xllth Plan.

Accordingly, MoU with IISc, Bangaloreand (SIR, New Delhi has been signed andsigning of MoU with 4 IITs and MSME- TRis under process. Only reputedorganization will be selected with theapproval of Competent Authority.

Physical progress of the scheme w.e.f.Feb. 2010 to si" March, 2012 in theXlth plan is mentioned at para 2.2 (page

benefit the industries. Out of 56 individualdesign projects and 4 group projectapproved during n" Plan, how many couldactually be completed are not mentioned.Whether these projects have enabled theMSMEs to reduce the cost of production,improve equality of product or services andincrease their production, market share andprofits is also not indicated.

Comment on components:

5. Rationale for organizing 20 orientationworkshops for design consultants needs tobe clearly stated.

6. It has been recommended to enhance theGovt. of India contribution for variousactivities to be undertaken under thescheme. The table under Para 4.3 of the EFCmemo provides details of the proposedactivities and the tentative rate for eachactivity. However, the existing rates for eachactivity and the ceiling per activity andproposed rate and ceiling per activity may beincorporated in the EFCmemo for perusal ofthe Committee.

7. There is discrepancy in amount ofassistance proposed to be provided to groupof MSME as mentioned under para 5.1.6 ofthe EFC memo and that mentioned in thetable given under para 4.3 (SL.5c&d) of theMemo. Further there is no mention ofdifferent assistance ceiling of Rs. 40 crore forgroup of medium and small MSMEs in 'formof funding support' given at para 5.1.6. Thismay be corrected.

8. It is proposed to enhance the GOIassistance in case of micro enterprises fromexisting 60% to 75% for design projects(Table under Para 3.2). However, nojustification for enhancing the Government

2 & 3) of the SFCnote.

In para 9 of the executive summary ofEvaluation Study Report (page 3), it ismentioned that "despite beingoperation for less than 3 years theachievement of the scheme has beenencouraging", not in terms of numbers,but also, in the context of changing themindsets. The scheme has successfullyachieved the purpose for which it wasset up during the Xlth plan.

The remark has been made as perprevious EFC note. As the no. ofimplementing agencies has beenincreased, the proposed nos. ofOrientation Programme is justified.The remark has been made as per EFCnote circulated earlier. The existing rateagainst each activity is incorporated inthe SFC note under para 4.2(Annexure B).

The remark has been made as per EFCnote circulated earlier. The tablecontaining the assistance provided togroup of MSMEs are mentioned underpara 2.2 (b) of the SFC.

The subsidy in respect of Microenterprise has been increased as financeis a major constraint. Also Microenterprises are facing a toughcompetition from their global

• subsidy is given in support. counterparts due to liberalization, changein manufacturing strategies and uncertainmarket scenario. It has been learnt thatthey are not able to take benefit of thescheme due to higher contribution ashighlighted by Evaluation study.

9. It is proposed to provide the NID andother Nodal agencies @15% of directexpenditure incurred from Gol fund asoperating expenses. This seems to be on thehigher side. This needs to be in tune withother scheme being implemented by otherMinistries and Departments.

The remark has been made as per EFCnote circulated earlier.Operating expenses covers hiring ofspace, staff salary, video conferencing,telephone/fax/internet/ AMC cost, etc.,charges to be incurred by implementingagencies for monitoring the RegionalDesign Centres across India.Also, this will include costing incurred in.day today running and monitoring of thescheme.

The expenditure incurred by theimplementing agencies (Honorarium forDesigner / consu Itant/ scientist/ professors/academicians, utilizing their services andinfrastructure of different Institutes) @14% (approx.) of Gol for the effectiveimplementation of the scheme.

The above expenditure are very muchneeded for successful implementation ofDesign Clinic scheme. Also, it is proposedto have two more new Design RegionalCentres (expenditure includes purchaseof furniture, hardware and software) andalso upgradation of the existing hardwareand software in the present plan.

The expenditure for the above is as perexisting price index and is not on thehigher side.

.. . 6.

Department supports the proposal with therequest that minimum 15% reservationshould be given to Scheduled casteentrepreneurs out of the total number ofprojects to be designed for individual MSMEor a group of MSMEs. The MSME is requiredto year mark 12% of fund under SCSPin itsAnnual Plan proposal under the scheme.

Mlo Social Justice and Empowerment, 0/0Social Justice and Empowerment(Coordination Section)

7. Mini~try of Human Resource Development,Deptt. of Higher Education

Ministry of HRD supports the proposalcontained in the draft EFC note for theimplementation of the Design Clinic scheme.It may however, mentioned that Ministry ofHRD has also launched a scheme NationalInitiative for Establishment of 20 DesignInnovation Centers, Open Design School andNational Design Innovation Network andMSME may utilize the services of theseDesign Innovation Centers. A brief note onthe scheme is enclosed.

8. Ministry of Women and Child Development

Ministry of Women and Child Developmentsupports the note for EFC on the proposalfor Design Clinic for design expertise toMSME's Manufacturing Sector subject to thefollowing comments:

"The potential of women should be fullytapped for augmenting innovative and newproducts designs for enhancing theircompetitiveness. The scheme should haveprovisions for giving adequate opportunitiesfor employment of women candidates. Alldesign institutes should consider providingcreches, rest room and other amenities forwomen".

Ministry of HRD supports the proposal,

Noted.Ministry of Social Justice andEmpowerment supports the proposal.

Noted.Ministry of Women and Child Developmentsupports the SFCproposal,

9. Ministry of Labour & Employment

Ministry of Labour & Employment, IR (PL) Ministry of Labour & Employment, IR (PL)

Section has no comments to offer on the Section has no comments to offer on the

Draft Note as this Section deals with policy Draft Note.

formulation and amendment to theIndustrial Dispute Act, 1947, the Trade UnionAct, 1926, the Industrial Employment(Standing Orders) Act, 1946, the PlantationLabour Act, 1951 etc. It is seen that thesubject of the EFCNote on the "Design ClinicScheme for Design Expertise to Micro, Smalland Medium Enterprises (MSMEs)Manufacturing Sector' relate to DGE&T.

As such, it is requested that the comments, ifany, in the matter may furnished to theMSME directly.

10. Ministry of Tribal Affairs

Ministry of Tribal Affairs supports the Ministry of Tribal Affairs supports theproposal and have no comments to offer. proposal.

11. Ministry of Environment, Forest andClimate change

Ministry of Environment, Forest and Climate Ministry of Environment, Forest and Climatechange no comments to offer supports the SFCproposal.